Abbott Laboratories (ABT) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+22.3%

$134.40

vs $109.89 price

Levered DCF

$113.41

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

3.29

Safe zone

Rating

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	33.5×	14.75×	33.35×	27.87×	35.45×	43.45×	41.96×	53.58×
P/B	4.2×	4.11×	4.94×	5.25×	6.98×	5.92×	4.94×	4.16×
P/S	4.94×	4.67×	4.76×	4.41×	5.8×	5.61×	4.81×	4.15×
EV / EBITDA	18.91×	18.79×	18.84×	16.87×	21.32×	23.01×	21.34×	20.74×
Gross margin	55.5%	50.8%	50.0%	51.1%	53.9%	50.2%	52.3%	51.7%
Operating margin	18.2%	16.3%	16.0%	19.2%	21.4%	15.3%	14.4%	12.6%
Net margin	14.7%	31.9%	14.3%	15.9%	16.4%	13.0%	11.6%	7.7%
Current ratio	1.58×	1.67×	1.64×	1.63×	1.85×	1.72×	1.44×	1.62×
Debt / equity	0.29×	0.32×	0.41×	0.49×	0.54×	0.61×	0.61×	0.64×
Interest coverage	23.6×	11.32×	9.22×	26.55×	22.44×	7.47×	5.61×	5.27×
Dividend yield	1.9%	2.0%	1.9%	1.7%	1.3%	1.3%	1.5%	1.6%
Payout ratio	63.1%	28.6%	62.1%	47.7%	45.3%	57.0%	61.6%	83.4%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	12.5%	28.1%	14.8%	18.9%	19.8%	13.7%	11.9%	7.8%
Return on invested capital	8.4%	9.9%	9.1%	11.4%	12.6%	7.8%	7.1%	5.4%
Return on assets	7.5%	16.5%	7.8%	9.3%	9.4%	6.2%	5.4%	3.5%
Free cash flow yield	3.4%	3.2%	2.7%	4.1%	3.5%	2.9%	2.9%	3.9%
Earnings yield	3.0%	6.8%	3.0%	3.6%	2.8%	2.3%	2.4%	1.9%
Enterprise value	$225.4B	$203.5B	$199.8B	$200.5B	$259.3B	$207.2B	$168.8B	$142.7B
Net debt / EBITDA	0.55×	0.71×	0.85×	0.68×	0.78×	1.45×	1.93×	2.29×
Cash conversion cycle (days)	107	96	101	79	69	90	88	82